The author has been described by News Ltd as an "iconoclast", "Svengali", a pollie's "economist muse", and "pungently accurate". Fairfax says he is a "Renaissance man" and "one of Australia’s most respected analysts." Stephen Koukoulas concludes that he is "85% right", and "would make a great Opposition leader." Terry McCrann claims the author thinks "‘nuance’ is a trendy village in the south of France", but can be "scintillating" when he thinks "clearly". The ACTU reckons he’s "an enigma wrapped in a Bloomberg terminal, wrapped in some apparently well-honed abs."

Sunday, March 20, 2011

Australian consumer risk-aversion and inflation expectations

Westpac produce a 'red book' that contains very detailed analysis of consumer behaviour over time. The latest shows us two interesting things, amongst others: a surge in inflation expectations and persistently higher levels of risk-aversion that are driving the uplift in the household savings rate and depressing consumption.